The quasi-linear fuzzy modeling of Filev (1991) is used to estimate the relationship between the number of managers and employees in a firm. The results form the basis for the classification of firms into small and large businesses. Application to a data of Australian firms shows an evolution...

Productivity growth is largely driven by the reallocation of resources from less productive firms to more productive ones. Whether corporate credit ratings function in a supportive role is, however, unknown. I use a panel of US manufacturing firms matched to their S&P ratings over the years 1980...

There is a growing concern that size-contingent regulatory taxes are causing considerable mis-allocation of resources from large efficient firms to small inefficient firms, with significant implications for welfare and aggregate productivity. Using a monopolistic competition framework, I...

This paper sheds new light on the forces shaping outsourcing decision by considering a certain form of non-linearity in overhead costs which effectively discretizes a firm's size into small and large regimes. Extending Grossman & Helpman (2002) in this line shows that firms unable to fully...